Contemporary Issues in Management Accounting

Bubba, I am writing this memo so that you can further understand the problem that you are encountering. You want to receive further funding in order for your restaurant to grow and expand across the country. The issue that the bank is having with you and the restaurant is that you are not supplying sufficient evidence for them to decide whether or not they want to grant the loan to you to expand your restaurant. Before the bank can decide on your loan, they require financial statements documenting the revenues, profits, and assets of your restaurant. These statements show the bank if you possess enough funds in order to pay back the loan but they also use it to measure the amount of potential for the restaurant because whenever a bank grants a loan to a business or business owner, they are making an investment in that individual or business.

a service department’s costs have been allocated, costs are not reallocated back to it under

While the traditional management accounting techniques may have contributed to planning, controlling and decision making processes at the nation state level, the requirements of globalisation in which nation states now compete for survival in the global market rather than state market, has rendered traditional techniques obsolete and therefore calls for the mobilisation of modern techniques of management accounting. It also calls for the service of accountants with modern management accounting techniques for a successful implementation.

The company should probably use direct labor-hours as the activity base, since the fit of the regression line to the data is much tighter than it is with tons mined. The R2 for the regression using direct labor-hours as the activity base is twice as large as for the regression using tons mined as the activity base. However, managers should look more closely at the costs and try to determine why utilities costs are more closely tied to direct labor-hours than to the number of tons mined.

Management accounting is about adding real value to the organization by combining accounting, finance and management with the business skills and techniques. It involves in management decision making, devising planning and performance management systems. Management accounting provides expertise in financial reporting and administer to assist management in the formulation and implementation organization's strategy.

Rothschild, J. M., Lee, T. H., Bae, T., and others. "Survey of Physicians' Experience Using a Handheld Drug Reference Guide." (Presented at AMIA 2000 Annual Symposium). American Medical Informatics Association, Los Angeles, California, March 2000.

Miller, P & O’Leary, T 1997, ‘Accounting and the Construction of the Governable Person’, Accounting, Organizations and Society, vol.12, n.03, pp235-265.

Accounting has become a more interesting and attractive position among the millennials due to the high demand in the industry after the Enron fraud scheme in the early 2000’s. It has also become a more interesting field due to the how the profession’s involvement and characteristics have changed since the incident as well. Accountants used to be known to be bean counters, characterised to be introverts, simply keeping track of companies’ financials. In recent years, there has been a shift from profession in which accountants

When this happen or the cash flow is stable it means that this company can be solvent and will meet its cash needs.

The development and rapid movement in the field of technology has changed the face of modern society from what it was twenty years ago. Information and communication technologies have changed dramatically even in the last ten years. Electronic mail, listservs, and the Internet, to name a few, are all parts of the new technology that is re-defining scholarly communication. In her article entitled “Scholarly Communication” Christine Borgman states that “[r]esearch was clustered around three variables: producers of the communication . . ., artifacts of communication . . . and communication concepts.” (146) The impact of the new communication technologies to scholarly communication cannot be

“Ending Inventory” = “Beginning Inventory” ($22,000) + “Purchases” ($30,000) – “Cost of Goods sold” ($24,000) = $52,000 - $24,000 = $28,000

Thus, it was seen as necessary to maintain the integrity of the profession of accounting as

Assume that Pittman Company decides to continue selling through agents and pays the 20% commissions rate. Determine the volume of the sales that would be required to generate the same net income as contained in the budgeted income.

CF is the new controller for the consumer division of ABC company. In the past five years, ABC’s earnings have grown by at least 15% annually, with the consumer division’s earnings growing by over 20% annually over the same time-period. In the 4th quarter of the current year, however, it is projected that consumer’s income will grow by 8% and ABC’s will grow by 10%. ML, consumer division’s president, wants CF to take some of the following “end of the year” actions in order to improve consumer’s reported earnings. Under the previous controller, these types of actions were more or less taken as acceptable practices.

Question 1: The situation in this case study revolves around Sally, a member of the Board of Sally Susie's Donut Shop, Inc. (SSDS). SSDS uses an accrual method of accounting and over the past three years has seen volatile sales. Sally is unhappy with her previous tax advisor and wants new advice. Our task is to outline a preliminary interview with Sally to ensure that we ask the right questions.